Who’s afraid of retirement?
February 2, 2004 | 12:00am
One is never too old to be a first-generation entrepreneur. In fact, segueing to entrepreneurship upon retirement is a great way to go.
When it comes to the matter of retirement, the work life of entrepreneurs and executives differ. Many successful executives approaching the mandatory age of retirement wonder about their future in various ways. Should I go on that long-desired European vacation? Finally spend more time at home with the family? Start that hobby that kept being postponed for lack of time? Buy that dream farm and become self-sufficient in food while living in a non-polluting and relaxed environment? And so on.
For entrepreneurs, there is no life after retirement. They retire on the day they die. And there is no such thing as a mandatory age of retirement. They enjoy themselves until death, simply because they are doing the things they love to do.
Recently, I had interesting encounters with two entrepreneurs who have become full-time entrepreneurs upon retirement as professional managers. Both have been able to build an entrepreneurial empire late in their lives.
The first was a highly respected government executive who had a very successful career in public service. Instead of living the life of a pensionado and live off his retirement funds, this person started an enterprise that was aligned with his passion, the available opportunities, and his resources. Because of this alignment, the enterprise had a very short incubation period and entered the growth stage of the enterprise life cycle in less than six months. There was urgency to accelerate growth since this person ventured into entrepreneurship rather late in life.
As the environment changed, new opportunities came. As the enterprise grew, more resources were available. Together with his unwavering passion, these factors further catapulted the enterprise to hyper growth.
It came to a point that the empire was evolving into a set of enterprises that were being set up to eventually be inherited by his children. Knowing each personality well, the founder saw to it that each enterprise to be incubated and grown matched the demeanor or personality of each child inasmuch as they were already clear to him by the time he retired and ventured into entrepreneurship.
Since passion for the enterprises is key to sustainable growth, it was his hope that this would be present if the character of the enterprise matched the character of the child.
The other retiring executive I encountered had a different approach. He accepted that mandatory retirement was coming and planned for an entrepreneurial life. He realized that the magnitude of the post-retirement enterprise must be such that it would allow him to maintain his lifestyle. He also knew what type of enterprises would fit his passion.
During his professional life, he used three strengths. First was his great managerial capability as chief executive officer of a top 1,000 company. As a CEO, the firm he served rewarded his services handsomely and his compensation was far greater than his family expenses. He accumulated funds for further investments. Thus, available capital was his other strength. His credibility and network as a professional manager gave him access to funds. Since he was dealing with financial institutions on behalf of the owners of the firm, he had a wide network of financial executives from major institutions. This was his third strength.
Armed with three strengths, this professional executive sought out potential partners who had (1) entrepreneurial ideas that could be incubated; (2) an existing and sustainable enterprise in need of funds and was under good management with a potential for growth; and (3) mature enterprises that needed good management to prevent their decline.
The three situations presented opportunities for building an entrepreneurial retirement activity. Deliberately, the professional executive made sure that his preparations for an entrepreneurial retirement did not conflict with his professional commitment to the shareholders of the firm he serves. He screened opportunities in the following manner.
If the opportunity would compete (directly or indirectly) with the business of his employer, it was rejected. If the opportunity would demand time that would reduce his official working hours, it was rejected. If the opportunity did not sit well with his envisioned array of entrepreneurial ventures, it was rejected.
On the positive side, he chose partners who had time to run the enterprise and who shared the same set of values. He chose partners whose vision for the enterprise was aligned with his.
This planned approach to entrepreneurial retirement proved correct. Today, this professional executive is about to retire and welcomes the thought that he is going to be the CEO or chief entrepreneurial officer of his well-prepared ventures into entrepreneurship.
In both cases, the retired executive proved that it is never too late to venture into entrepreneurship. And only death will signal that second mandatory retirement.
(Alejandrino Ferreria is the dean of the Asian Center for Entrepreneurship of the Asian Institute of Management. For further comments and inquiries, you may contact him at: [email protected]. Published "Entrepreneur’s Helpline" columns can be viewed on the AIM website at http//: www.aim.edu.ph).
When it comes to the matter of retirement, the work life of entrepreneurs and executives differ. Many successful executives approaching the mandatory age of retirement wonder about their future in various ways. Should I go on that long-desired European vacation? Finally spend more time at home with the family? Start that hobby that kept being postponed for lack of time? Buy that dream farm and become self-sufficient in food while living in a non-polluting and relaxed environment? And so on.
For entrepreneurs, there is no life after retirement. They retire on the day they die. And there is no such thing as a mandatory age of retirement. They enjoy themselves until death, simply because they are doing the things they love to do.
Recently, I had interesting encounters with two entrepreneurs who have become full-time entrepreneurs upon retirement as professional managers. Both have been able to build an entrepreneurial empire late in their lives.
The first was a highly respected government executive who had a very successful career in public service. Instead of living the life of a pensionado and live off his retirement funds, this person started an enterprise that was aligned with his passion, the available opportunities, and his resources. Because of this alignment, the enterprise had a very short incubation period and entered the growth stage of the enterprise life cycle in less than six months. There was urgency to accelerate growth since this person ventured into entrepreneurship rather late in life.
As the environment changed, new opportunities came. As the enterprise grew, more resources were available. Together with his unwavering passion, these factors further catapulted the enterprise to hyper growth.
It came to a point that the empire was evolving into a set of enterprises that were being set up to eventually be inherited by his children. Knowing each personality well, the founder saw to it that each enterprise to be incubated and grown matched the demeanor or personality of each child inasmuch as they were already clear to him by the time he retired and ventured into entrepreneurship.
Since passion for the enterprises is key to sustainable growth, it was his hope that this would be present if the character of the enterprise matched the character of the child.
The other retiring executive I encountered had a different approach. He accepted that mandatory retirement was coming and planned for an entrepreneurial life. He realized that the magnitude of the post-retirement enterprise must be such that it would allow him to maintain his lifestyle. He also knew what type of enterprises would fit his passion.
During his professional life, he used three strengths. First was his great managerial capability as chief executive officer of a top 1,000 company. As a CEO, the firm he served rewarded his services handsomely and his compensation was far greater than his family expenses. He accumulated funds for further investments. Thus, available capital was his other strength. His credibility and network as a professional manager gave him access to funds. Since he was dealing with financial institutions on behalf of the owners of the firm, he had a wide network of financial executives from major institutions. This was his third strength.
Armed with three strengths, this professional executive sought out potential partners who had (1) entrepreneurial ideas that could be incubated; (2) an existing and sustainable enterprise in need of funds and was under good management with a potential for growth; and (3) mature enterprises that needed good management to prevent their decline.
The three situations presented opportunities for building an entrepreneurial retirement activity. Deliberately, the professional executive made sure that his preparations for an entrepreneurial retirement did not conflict with his professional commitment to the shareholders of the firm he serves. He screened opportunities in the following manner.
If the opportunity would compete (directly or indirectly) with the business of his employer, it was rejected. If the opportunity would demand time that would reduce his official working hours, it was rejected. If the opportunity did not sit well with his envisioned array of entrepreneurial ventures, it was rejected.
On the positive side, he chose partners who had time to run the enterprise and who shared the same set of values. He chose partners whose vision for the enterprise was aligned with his.
This planned approach to entrepreneurial retirement proved correct. Today, this professional executive is about to retire and welcomes the thought that he is going to be the CEO or chief entrepreneurial officer of his well-prepared ventures into entrepreneurship.
In both cases, the retired executive proved that it is never too late to venture into entrepreneurship. And only death will signal that second mandatory retirement.
(Alejandrino Ferreria is the dean of the Asian Center for Entrepreneurship of the Asian Institute of Management. For further comments and inquiries, you may contact him at: [email protected]. Published "Entrepreneur’s Helpline" columns can be viewed on the AIM website at http//: www.aim.edu.ph).
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